pick one topic from The Wall Street Journal and write a summery
Topic from the Wall Street Journal
This topic is about a decision that was reached on February 20, 2015, by the Eurozone regarding the extension of Greece bailout by four months (Wall Street Journal, 21 February 2015). Eurozone ministers agreed to extend the bailout on condition that Athens provides details of adequate economic reforms that it intends to undertake. The negotiations that led to this deal were so tough that it led to the souring of relationships between Greece’s finance minister and some of Eurozone finance ministers. The development also led to a rise in markets the euro against the yen and the dollar, as well as stocks in the United States.
Another aspect of the topic entails the denial by the Greece’s finance minister that the government had effectively surrendered its anti-austerity promises, which were the main factor in its recent ascension to power. Despite these assertions, concerns are still being raised about the ability by Greece to pay its debts. To show commitment to pay these debts, Greece is required to outline a list of economic overhauls and budget cuts and present it to the European Commission for review. Upon approval, Athens will receive €7.2 billion, which is part of the bailout package worth €240 billion that has continued to keep its economy afloat during the last five years (Wall Street Journal, 21 February 2015).
This news item is being viewed as a victory for the government of Greece, which will be allowed to maintain a small primary surplus in its budget. However, it is also an indictment on the government’s inability to meet or surpass expectations in terms of economic performance. It is also an indicator of growing uncertainty arising from a delay in the realization of the long-overdue favorable outcomes of the bailout process.
Wall Street Journal, 21 February 2015. Eurozone Agrees on Four-Month Extension of Greece Bailout. Online.